Market Live: Nifty around 11,050, Sensex falls 150 pts; RIL gains 8% post AGM

Among sectors, except energy (up 2 percent), all other indices are trading in the red led by the infra, FMCG, metal, pharma, bank, auto and IT.

Alembic Pharmaceuticals gets USFDA approval: Alembic Pharmaceuticals has received approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Dorzolamide Hydrochloride Ophthalmic Solution USP, 2%.

Gold hits over six-year peak: Gold prices scaled their highest in more than six years on Tuesday, as concerns around protests in Hong Kong and an Argentine currency crash amid fears of global economic slowdown, prompted investors to move away from riskier assets, reported Reuters.

Britannia Industries touches 52-week low: Shares of Britannia Industries touched 52-week low of Rs 2,491, slips nearly 4 percent intraday on August 13 as brokerage houses cut the target price after company reported its June quarter numbers.

The company’s Q1FY20 net profit was down 3.5 percent at Rs 249 crore against Rs 258.1 crore in the same quarter last fiscal.

Macquarie on Reliance Industries
Upgrade to outperform, target raised to Rs 1,370 from Rs 1,220 per share
See 19 percent upside following the stream of bullish newsflow at the AGM
Target reflects Aramco’s premium bid for refining & chemicals business

Morgan Stanley on Reliance Industries
Upgrade to overweight from equal-weight, target at Rs 1,349 per share
Time to relook at the stock
Cheaper ethane feedstock could drive upside in PE

Jefferies on Reliance Industries
Underperform rating, target at Rs 990 per share
Clear intent to deleverage helped by lower capex
Key plank is a 20 percent sale of its O2C biz to Aramco

UBS on Reliance Industries
Buy rating, target at Rs 1,500 per share
Moving to new pastures with leaner balance sheet
Broadband starter pack 15 percent higher than our ARPU of Rs 600/month

CLSA on Reliance Industries
Retain buy rating, target at Rs 1,530 per share
AGM announcements should dispel fear over leverage
Co sets the stage for the next leap for co’s tech & consumer businesses

Nomura on Reliance Industries
Road map towards zero net debt a positive
Buy rating, target at Rs 1,600 per share
O2C division may not be demerged soon
Estimate Aramco deal to be 6 percent EPS dilutive for Co’s standalone for FY21

Nomura on Sun TV
Near-term ad slowdown; subscription growth story intact
Maintain buy, target cut to Rs 644 per share
EPS estimates cut by 0.5 percent/2 percent for FY20/21

Citi on Sun TV
Maintain buy, target cut to Rs 580 from Rs 690 per share
Lower estimates by 5-6 percent & multiple to 15x from 17x
Valuations at 11x FY21e P/E very attractive for the franchise

CLSA on Sun TV
Maintain buy, target cut to Rs 600 from Rs 730 per share
While subscriptions outlook remains strong, co sees muted ad rev growth in FY20
Cut estimates by 1-6 percent
Maintain buy as stock trades at a 40 percent disc to its 10-yr average PE

Kotak Institutional Equities on BHEL 
Reduce rating, target cut to Rs 58 from Rs 67 per share
EBITDA losses led by seasonal factors
Revenue line is poised to decline from static Rs 29,000-30,000 cr

HSBC on BHEL 
Q1 reveals new pain points over lack of orders & adverse payment terms
Believe actual ordering is sometime away
Retain hold rating, target at Rs 62 per share

Morgan Stanley on GAIL 
Stock pricing in margin compression & no growth in either business
Multiples below historical trough
Earnings beating expectations & gas demand outlook remains strong
Maintain overweight, target at Rs 237 per share

Jefferies on GAIL 
Retain buy rating, target at Rs 190 per share
Volumes lower across segments
Petrochem EBITDA negative, hurt by lower realisations
Cut FY20-21 EPS estimates by 4-6 percent

Kotak Institutional Equities on GAIL 
Buy rating, target cut to Rs 190 from Rs 220 per share
Q1 results ahead of our estimates driven by higher gas marketing contribution
Higher gas marketing contribution offset by lower volumes
Sharp correction in stock price an opportunity to buy

Jefferies on SAIL 
Maintain underperform, target at 34 per share
Q1 profit well below estimates
Margi in-line but volume disappointed
With domestic steel prices softening, expect margin to decline further
Net debt has jumped sharply in Q1
De-leveraging would be slow; net debt/EBITDA may stay over 4.5x

Kotak Institutional Equities on Thermax 
Maintain add call, target at Rs 1,140 per share
Revise down our estimates by 2-4 percent
Deferred orders by cement cos put co on look-out for short cycle orders

Kotak Institutional Equities on Hindalco 
Buy rating, target at Rs 240 per share
Lower by-product credits at copper & lower realisations at aluminium led to EBITDA miss
Expect weak aluminium prices to be offset by declining costs going forward

Kotak Institutional Equities on Britannia 
Retain reduce rating, target cut to Rs 2,500 from Rs 2,800 per share
Co ruled out a quick recovery in demand
Lower FY20-22e EPS forecasts by 8-11 percent

HSBC on Britannia 
Hold rating, target cut to 2,850 from Rs 3,100 per share
Volume growth of 3 percent below expectations
Margin contracted mainly led by a rise in input prices

Citi on Britannia 
Maintain buy, target cut to Rs 3,000 from Rs 3,250 per share
Cut estimate by 5-7 percent factoring the results & for recent trends
Cut multiple slightly given tougher operating environment.

Credit Suisse on Motherson Sumi 
Outperform call, target at Rs 180 per share
Q1 operationally in-line; higher interest cost drives PAT miss
Higher-than-expected interest cost & tax rate led to a 15 percent miss in net income

Nomura on Motherson Sumi 
Buy rating, target at Rs 156 per share
Consolidated results largely in-line with estimates
Demand outlook for global luxury & domestic PV a concern

Citi on Shree Cements 
Neutral rating, target at Rs 21,000 per share
Q1 slightly below estimate; limited valuation comfort
Constructive on cement in medium-term

CLSA on Shree Cements 
Downgrade to underperform from outperform, target at Rs 20,800 per share
Raise our realisation assumptions based on higher spot cement prices
Higher realisation assumption offset by lower volume growth estimate

HSBC on Shree Cements 
Retain reduce rating, target at Rs 14,630 per share
Volumes underperform peers & lower than our estimates
Strong realisations & weak volumes indicate focus on margin over mkt share

Citi on Cadila Health 
Sell rating, target cut to Rs 220 from Rs 255 per share
Cut FY20/21 EPS estimates by 15 percent/12 percent
Co sees US revenue declining

CLSA on Cadila Health
Upgrade stock to buy from sell, target raised to Rs 285 from Rs 250 per share
Cut FY20-21 EPS estimate by 8-14 percent on lower margin & higher depreciation assumptions

Nomura on PNC Infra 
Buy rating, target at Rs 230 per share
Q1 earnings beat at all levels
Quarterly execution run-rate on track to beat its Rs 4,500 crore FY20 sales guidance

HSBC on Divis Labs 
Downgrade to hold from buy, target cut to Rs 1,670 from Rs 1,760 per share
Revenue declined QoQ on ongoing supplies issues in Q1

Credit Suisse on TTK Prestige 
Maintain underperform, target cut to Rs 5,100 from Rs 6,000 per share
Cut FY20E/FY21 earnings by 6-9 percent
Remain skeptical of a strong growth recovery

Nomura on Balkrishna Industries
Reduce rating, target at Rs 711 per share
Q1 operating performance disappoints
See further downside risks to management’s target of 3-5 percent volume growth in FY20

Credit Suisse on Varroc Engineering 
Maintain outperform, target cut to Rs 580 from Rs 696 per share
Cut rev & margin estimate to build in a negative global auto outlook
Cut our estimates for the China JV; EPS estimates cut by 25 percent

CLSA on MGL  
Miss on volumes more than offset by big beat on margins
Retain buy rating, target at Rs 1,270 per share
10 percent fall in domestic gas price could act as a margin tailwind

HSBC on Tata Chemicals 
Maintain buy rating, target at Rs 700 per share
Consumer revenue up 13 percent YoY but profitability impacted by one-offs

Unichem Laboratories gets USFDA nod: Unichem Laboratories has received ANDA approval from USFDA for Unichem’s Tramadol Hydrochloride Tablets USP, 50 mg. to market a generic version of Ultram Tablets, 50 mg, of Janssen Pharmaceuticals, Inc. which are indicated in adults for the management of pain severe enough to require an opioid analgesic and for which alternative treatments are inadequate.

Minda Corporation signs agreement with INFAC Elecs: Minda Corporation signed technical assistance agreement (TAA) with INFAC ELECS CO of South Korea to manufacture Automotive Antenna Systems.

Results Today: Glenmark Pharmaceuticals, ONGC, Sun Pharmaceutical, Coal India, Alembic, Bosch, National Aluminium Company, Bharat Forge, Chalet Hotels, Adhunik Industries, UFO Moviez, Solara Active Pharma Sciences, GMM Pfaudler, RITES, Fine Organic Industries, Dishman Carbogen Amcis, Karda Constructions, Setco Automotive, Techno Electric, Mandhana Industries, Shree Pushkar Chemicals, Reliance Home Finance, Mandhana Retail Ventures, Rollatainers, Rama Steel Tubes

Bharat Road Network, Precision Camshafts, Hindustan Aeronautics, MEP Infrastructure Developers, Dixon Technologies, Nagarjuna Fertilizers, Apex Frozen Foods, Dr Lal Path Labs, A2Z Infra Engineering, Snowman Logistics, Rain Industries, Vakrangee, Venus Remedies, Texmo Pipes, Shree Ganesh Forgings, Zenith Birla, Blue Star, BGR Energy Systems, Ansal Properties, Aarti Industries

Vardhman Textiles, Time Technoplast, Shilpa Medicare, Tamil Nadu Newsprint, Patel Integrated Logistics, Jai Corp, Essel Propack, Zodiac Clothing Company, Orissa Minerals Development Company, Mawana Sugars, Bajaj Hindusthan Sugar, Amrutanjan Health, Allied Digital Services, Everest Kanto Cylinder, Gallantt Ispat, Talwalkars Better Value, Bodal Chemicals, Kilitch Drugs,

Ashoka Buildcon, Manappuram Finance, Prime Focus, Parsvnath Developers, Redington (India), Godrej Industries, Gujarat Narmada Valley Fertilizers, Hotel Leela Venture, Sintex Industries, Saregama India, Electrosteel Castings, Mercator, JB Chemicals, Sakthi Sugars, Madhucon Projects, IPCA Laboratories, Morepen Laboratories, Reliance Infrastructure, Apollo Hospitals,

Opto Circuits, Kernex Microsystems, Kaveri Seed Company, Info Edge, Power Finance Corporation, DB Realty, Amtek Auto, Uflex, West Coast Paper Mills, Indoco Remedies, India Nippon Electricals, Jindal Cotex, Esab India

Market Opens: It is a flat start for the Indian indices in the truncated week as Nifty trading below 11,100.

At 09:19 hrs IST, the Sensex is down 117.43 points at 37464.48, while Nifty is down 32.90 points at 11076.80. About 438 shares have advanced, 522 shares declined, and 53 shares are unchanged.

Reliance Industries, Gail India, BPCL, Yes Bank, Indiabulls Housing, Zee Entertainment, Tata Motors are some of the major gainers on the indices, while losers are NTPC, Bharti Airtel, Britannia Industries, Vedanta, M&M, Power Grid, HDFC, JSW Energy, HUL, Tech Mahindra, Inox, PVR and Dish TV.

Among sectors, except energy (up 2 percent), all other indices are trading in the red led by the infra, FMCG, metal, pharma, bank, auto and IT.